The Federal Government of Nigeria has successfully raised N47.355 billion through its third Sovereign Green Bond issuance, drawing a significant level of interest from investors who subscribed to a total of N91.42 billion—an oversubscription of 183%. This was revealed by the Debt Management Office (DMO), which conducted the auction on behalf of the federal government.
Originally offering N50 billion worth of bonds for subscription, the DMO said the strong demand underscores the increasing confidence in Federal Government Securities. The green bond, allotted at a coupon rate of 18.95% per annum, will support eco-friendly projects outlined in the 2024 Appropriation Act.
In a press statement, DMO Director-General Patience Oniha emphasized the strong investor turnout as a reflection of growing trust in Nigeria’s commitment to sustainable financing and climate-focused development. She noted that the green bond proceeds will be directed toward initiatives supporting Nigeria’s Nationally Determined Contributions (NDCs) under the Paris Agreement, including the long-term objective of achieving net-zero carbon emissions by 2060.
“The remarkable uptake from investors demonstrates their belief in Nigeria’s climate goals and our trajectory in green financing,” Oniha said. “This is another milestone in our journey to embed sustainable development into public sector funding.”
The DMO also hosted an investor engagement forum in Lagos ahead of the bond’s issuance, where Oniha reaffirmed that Nigeria’s green bonds were an instrumental tool in addressing the impacts of climate change. She traced the nation’s climate financing trajectory back to earlier issuances in 2017 and 2019, which cumulatively raised over N25 billion.
The five-year bond aims to finance targeted infrastructure and renewable energy projects, thus reinforcing the country’s environmental resilience. The initiative also contributes to the deepening of Nigeria’s capital market by diversifying available investment instruments.
